Correlation Between American Express and 303075AA3
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By analyzing existing cross correlation between American Express and FDS 29 01 MAR 27, you can compare the effects of market volatilities on American Express and 303075AA3 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Express with a short position of 303075AA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 303075AA3.
Diversification Opportunities for American Express and 303075AA3
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 303075AA3 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Express and FDS 29 01 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDS 29 01 and American Express is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Express are associated (or correlated) with 303075AA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDS 29 01 has no effect on the direction of American Express i.e., American Express and 303075AA3 go up and down completely randomly.
Pair Corralation between American Express and 303075AA3
Considering the 90-day investment horizon American Express is expected to generate 5.69 times more return on investment than 303075AA3. However, American Express is 5.69 times more volatile than FDS 29 01 MAR 27. It trades about 0.17 of its potential returns per unit of risk. FDS 29 01 MAR 27 is currently generating about 0.03 per unit of risk. If you would invest 16,644 in American Express on September 3, 2024 and sell it today you would earn a total of 13,582 from holding American Express or generate 81.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.19% |
| Values | Daily Returns |
American Express vs. FDS 29 01 MAR 27
Performance |
| Timeline |
| American Express |
| FDS 29 01 |
American Express and 303075AA3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 303075AA3
The main advantage of trading using opposite American Express and 303075AA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 303075AA3 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 303075AA3 will offset losses from the drop in 303075AA3's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| 303075AA3 vs. Freedom Holding Corp | 303075AA3 vs. Evolution Gaming Group | 303075AA3 vs. Western Acquisition Ventures | 303075AA3 vs. Equinix |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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